On Nov. 2, CA (NYSE:CA) -- the former Computer Associates -- released third-quarter earnings for the period ended Sept. 30. The stock slumped upwards of 10% on the report.
- Revenues for the software maker grew 4.8% to $996 million. That was thanks largely to growth in subscription and professional services, but declines in maintenance and software fees offset some of the gains.
- Lower bookings and the associated billings seem to be the big factors affecting the stock price, as well as a plunge in free cash flow.
- The earnings release coincided with the news that the company's former CEO, Sanjay Kumar, was sentenced to 12 years in prison for his role in a massive $2.2 billion accounting fraud in the early 2000s.
- Our Motley Fool CAPS players have no confidence in the future of the stock, assigning it a meager one-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Sales |
$996 |
$950 |
4.8% |
|
Net Profit* |
$53 |
$46 |
15.2% |
|
EPS |
$0.09 |
$0.08 |
12.5% |
|
Diluted Shares |
584 |
610 |
(4.3%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
No Data |
No Data |
No Data |
|
Operating Margin |
7.83% |
6.00% |
1.83 |
|
Net Margin |
5.32% |
4.84% |
0.48 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,295 |
$1,640 |
(21%) |
|
Accounts Rec. |
$422 |
$371 |
13.7% |
|
Inventory |
N/A |
N/A |
N/A |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
No Data |
No Data |
No Data |
|
Long-Term Debt |
$2,577 |
$1,810 |
42.4% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$6 |
$299 |
(98%) |
|
Capital Expenditures* |
$47 |
$47 |
0% |
|
Free Cash Flow |
($41) |
$252 |
N/A |
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Related companies:
- BMC Software (NYSE:BMC)
- EMC (NYSE:EMC)
- Adobe Systems (NASDAQ:ADBE)
- Sybase (NYSE:SY)
Related Foolishness:
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